Hello,
In the previous year 2011-12,I have passed one receipt entry for Sundry Debtors(payment belonged to 2010-11)and mistakenly forgot to put opening balance of that debtor.Result is that,in the current year same amount is standing as credit balance.Can anyone tell me how to resolve/rectify?
Thanks in advance

Dear,

Our company has purchased a Desktop Computer from a Store by paying full payment.

The store gave us a Quotation and was approved and payment worth Rs. 23,500.00 was made in that respect.

Kindly suggest if this can be treated asa cash expense to buy a FA and the Entry if treatment is otherwise.

OURS IS A PARTNERSHIP FIRM WHICH WAS NEWLY STARTED IN OCTOBER 2012.
IN NOVEMBER 2012 WE PURCHASED FURNITURE FOR OUR OFFICE IN THE NAME OF THE FIRM AMOUNTING TO Rs. 180000/-.
THE ENTIRE AMOUNT OF Rs. 180000/- WAS PAID IN CASH ON A SINGLE DAY.ACCORDINGLY THE SUPPLIER ALSO RAISED A SINGLE BILL FOR Rs. 180000/-.
THIS WAD DONE BY THE PARTNERS WITHOUT LACK OF KNOWLEDGE OF INCOME TAX PROVISIONS.

AS AN ACCOUNTANT NOW I FIND IT DIFFICULT TO RECORD THE ABOVE TRANSACTION IN BOOKS OF ACCOUNT AS I THINK THE ENTIRE AMOUNT MAY BE DISALLOWED AS PER SECTION 40 A
(3).

MY QUERY IS :
1. HOW TO AVOID DISALLOWANCE IF APPLICABLE?

2. FURNITURE BEING AN ASSET,IS SECTION 40 A (3) APPLICABLE OR NOT?

3. CAN I PASS JOURNAL ENTRY IN THE BOOKS OF ACCOUNT FOR Rs. 180000/- AS FOLLOWS:

ASSET A/C ..... DEBITED
TO SUPPLIER A/C
(Being Liability for furniture purchased)

WHEN PAYMENT IS MADE SUPPLIERS A/C WILL BE DEBITED FOR Rs. 180000/-.
IF I FOLLOW THE ABOVE PROCEDURE WILL SEC 40 A(3) BE STILL ATTRACTED?

4. ANOTHER ALTERNATIVE IF I TREAT THE ENTIRE PAYMENT OF Rs. 180000/- AS ADVANCE and LATER ON I PASS JOURNAL VOUCHER BY DEBITING TO ASSET A/C AND CREDITING TO ADVANCE A/C.
IS THIS ALTERNATIVE CORRECT?

5. OR STRAIGHT AWAY CAN I RAISE VOUCHER FOR Rs. 180000/- enclosing the bill of Rs. 180000/-.

6. OR SHOULD I COLLECT BILLS BELOW 20000/- ON DIFFERENT DATES FOR THE ENTIRE AMOUNT OF 180000/- i.e., splitting the amount.

KINDLY ADVISE ME THE CORRECT PROCEDURE AND SUGGEST ME THE CORRECT WAY OF ACCOUNTING THE ABOVE EXPENDITURE WITH THE HELP OF ENTRY SO AS TO AVOID DISALLOWANCE OF EXPENDITURE IF SECTION 40 A(3) APPLIES.

SIMILARLY WE HAVE PURCHASED 04 AIR CONDITIONERS FOR OUR OFFICE FOR Rs. 120000/- and the entire amount was PAID IN CASH in a single day AND A SINGLE BILL FOR Rs. 120000/- WAS RASIED by the supplier.
THIS WAS ALSO DONE BY THE PARTNERS.

KINDLY SUGGE3ST ME .

A bank loan of rs50000 against debtor under negotiation?

What is capital redemption reserve?

Dear Sir,

Kindly clarify following queries regarding SFIS.

1)At the time of Purchase of Assets or Spares Custom duty debited to Assets or Material Purchase now I have a question at the time of availing SFIS credit which account should be debited for availing the SFIS Credit.

2)I have already created SFIS receivable provision in the books.

3)If at the time of purchase I have debited to Assets than availing of credit should be credited to Assets account ?
4) If at the time of purchase I have debited to Material purchase than availing of credit should be credited to Material purchase account ?

Above issues related to accounting OF SFIS credit receivable and avail of credit.

Regards,
Akbar Saudagar

A bank loan of rs50000 against debtors is under negotiation.

I was allotted PF account number from company and I avail PF deduction. But now from accounts department I came to know that the account number to which they were depositing amount has somebody else name and that person had worked for about 2 months. They are giving reason that error is from EPF Office and now they are saying I need to go to PF consultant to resolve it and accounts department will give all the necessary documents. First, I want to know the procedure and documents to change the name of the PF account and replace that person name with mine. and second, it this not the duty of Accounts department. Please, reply with resolution as soon as possible. Thanks

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After completion of a Project, there will be a post project maintenance period. Say for Example 1 year free maintenance. During this Period the Company spends some money for Materials, Labour and Other Maintenance Exp. My question is, are these expenses belongs to the project or General Repairs and Maintenance Exp.? If it is a Project Expenses where and how to account it? Could anyone give me a detailed explanation?